FX.co ★ Technical analysis of USDX for August 11, 2016

The Dollar index has reversed lower as we expected from the 96.30-96.50 area. Price however holds above short-term support at 95.60 as short-term trend is neutral with no clear direction. 96.50 and 95.50 are the key levels to watch out for.

Blue line - trend line resistance

The Dollar index is trading inside the Kumo (cloud) and below the trend line resistance. Short-term resistance is at 96.30-96.50. A break above this level will open the way for a move towards 97.50 at least if not higher. Support is at 95.50 and a break below it will open the way for a move towards 95 and most probably lower.

The weekly candle remains below the weekly Kumo but a slight long lower tail suggests that there are still buyers supporting price. The weekly tenkan- and kijun-sen indicators remain below price suggesting that the bullish short-term trend is supported. Bears need to break below 95.30 on a weekly close in order for the downside to accelerate.